We do Santa, but just for fun. The kids know he's just pretend, but we all kind of play along anyway. They get a couple of presents from Santa, we read books with him in it, watch Christmas movies about him. We make our focus Jesus, but I don't see anything wrong with a little Santa fun, too.

Eta - My parents always made it very clear that Santa wasn't real. I can definitely see the fun and magic in playing along with the kids. Every year I struggle with the idea of just letting them believe in hm. ODD kind of knows he's not real, but my YDD and DS are still young enough that we could convince them, if we wanted to. We'll see.